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Apple should NOT cut Mac prices
Written by: Dennis SellersArticle Overview: There’s a constant cry from some quarters for Apple to slice prices on the Macs to: a) compete with the bargain bin PeeCees, b) accommodate consumers in these tough economic times, and/or c) prove those Microsoft ads wrong. To which I say: don’t do it
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Free Download - If and when the ‘iPad’ arrives, it won’t be a stopgap solution By Dennis Sellers |
Apple should NOT cut Mac prices
There’s a constant cry from some quarters for Apple to slice prices on the Macs to: a) compete with the bargain bin PeeCees, b) accommodate consumers in these tough economic times, and/or c) prove those Microsoft ads wrong. To which I say: don’t do it
ow that I have your attention, let me clarify: if Apple can reduce the prices on Macs, that’s fine. I’m certainly not a millionaire, and any moolah I can save would be welcome. That said, the Mac has never been—and should never be—a computer for those who care about nothing but price.
When people think of Apple, they think of quality. Like it or not, quality costs. Apple offers the best, most user-friendly computing experience around. And despite what some folks would like you to believe, Macs are the safest, most secure, computers.
But let’s say Apple decided to compete in the bargain bin of computers. How could it reasonably lower the price on its Mac line? Use cheaper parts? More boring, standard-issue product designs? Not bundle iLife with the hardware and make folks pay for it if they want it?
Do any of these and you dilute the Mac experience. Do all of them and you destroy it.
Related ArticlesWhen people think of Apple, they think of quality. Like it or not, quality costs. Apple offers the best, most user-friendly computing experience around. And despite what some folks would like you to believe, Macs are the safest, most secure, computers.
But let’s say Apple decided to compete in the bargain bin of computers. How could it reasonably lower the price on its Mac line? Use cheaper parts? More boring, standard-issue product designs? Not bundle iLife with the hardware and make folks pay for it if they want it?
Do any of these and you dilute the Mac experience. Do all of them and you destroy it.
To those to whom nothing matters but price, they will have to look elsewhere. As for me, I make my living on my 24-inch iMac. It’s also—with a couple of Bose speakers attached—my home stereo system. It holds my photos, home videos and more. It sometimes doubles as a TV and/or DVD player.
So if I have to pay more to have the seamless computing experience I have with my Mac, it’s worth it to me. And if Apple’s margins are a bit higher than its competitors, and those margins are used to drive further research and development of innovative new products, I’m okay with that, as well.
So if I have to pay more to have the seamless computing experience I have with my Mac, it’s worth it to me. And if Apple’s margins are a bit higher than its competitors, and those margins are used to drive further research and development of innovative new products, I’m okay with that, as well.
Premium Apple App Store? Mac App Store?
My take on the ‘iPhone lite, ‘Apple Pad’
Jobs' departure, though hopefully temporary, had to happen sooner or later
Things I don’t think we’ll see: a 99 buck iPhone, an Apple television
The Sellers Research Group’s take on Apple’s financial
Article Tags: apple, background color, bargain bin, color 000000, consumers, economic times, ilife, mac line, macs, mdash, microsoft, microsoft ads, millionaire, moolah, ow, quality costs, quarters, rsquo, span style, style color
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About the Author: Dennis Sellers RSS for Dennis's articles - Visit Dennis's website  Click here to visit Dennis's website   Kindle app for the iPhone wont affect Kindle 2 hardware sales Reasons Im looking forward to Snow Leopard If and when the iPad arrives it wont be a stopgap solution Things I dont think well see a 99 buck iPhone an Apple television Macworld Expo should change venues dates in the future |
Related Forum Posts
Re: Apple sold 10 million iphones in 2008
- I love reading the story Apple and Steve Job. 10 millions iphones within a year, this is amazing. I am interested in owning Apple shares
Re: What If Steve Jobs Hadn't Returned To Apple In 1997?
- Thanks for sharing with us Yinko.
Steve Jobs is definitely a visionary. Not only his products are innovative in a technological sense, but he's managed to turn a tech-company's products into a lifestyle.... a lifestyle!!
[quote:zfqoq43n]Fast Forward to today. Apple has the sexiest products in the business: iMacs, Macbooks, iPhones, iPods and more.[/quote:zfqoq43n]
I think not only tech would be different (music players and phones), but ways we can think of marketing and branding. What Steve Jobs did was of course no easy task for the smaller businesses, but he did start somewhere.
What I did not know was that Apple is worth about as much as Google.
How do you think Apple accomplish what they did? In terms of strategy wise?
If you could advice Steve on one thing, what would it be?
zipcar saves Gas cost
- The gas prices haven't affected me in anyway.
I use the Transit system and ZipCar.
I love Zipcar 'cos it has Gas and Insurance included in the prices and they haven't raised that for a couple of years now.
Re: What is your biggest challenge? Today?
- [quote="Alan Mater":3qk869js]No, but it's a good indicator that you'll get good quality. People that provide quality know that they can raise prices due to the quality of their work.[/quote:3qk869js]
It is certainly an indicator, but my personal experience after working with many many freelancers, that price is can be a weak indicator. Quite often the reason is some people are much better at marketing and selling themselves, which results in more clients, and higher prices. But their ability to market and sell themselves it not necessarily an indicator of their quality.
[quote:3qk869js]Should we let the market determine how much we're worth, or should we tell the market how much we're worth and let it up to them to decide if what we're saying is true?[/quote:3qk869js]
The market always decides. The price is not set until a transaction takes place, so you could put your prices where-ever you want but if nobody wants to buy it, then the market has refused that price.
Its certainly true some people undervalue their work (just as some over-value), but you can only raise prices as much as people are willing to pay, and as you raise your prices you'll find fewer and fewer willing to pay (market forces).
If you can charge more than average in your industry then that is great, certainly you should not lower your prices and I was in no way suggesting that. Its up to the freelancer to try and get as much as they can for the work they do, but market forces will always limit that.
Re: What is your biggest challenge? Today?
- [quote="christew":1f5i0uox][quote="Alan Mater":1f5i0uox]The question of quality comes into play at this point. [/quote:1f5i0uox]
Yeah quality is often correlated with price, but paying more won't always guarantee higher quality.
If you look around there is a huge amount of great writing talent that work at good prices. I was once one of those writers (started at $3/post) before I eventually ended up doing my own thing.
The internet has empowered almost anyone to become a writer very easily, which has opened up the job market, pushing down prices considerably.[/quote:1f5i0uox]
No, but it's a good indicator that you'll get good quality. People that provide quality know that they can raise prices due to the quality of their work. But, as you said, because of the competition these days, the prices are low and forcing people to charge less than they normally would.
It's finding the balance between the price you want to pay and the quality you want that can be a challenge. You may have to go through several different freelancers before you find one that will be your long-term provider.
I have a client I write articles for at very minimum prices. I don't mind it, though, because it's not my main service, and I know I'm helping the client out with getting more work. He has to charge lower prices because of the competition, so in turn I get paid less.
This brings up the question: Should freelancers lower their prices just to please the market and risk losing money in the long-run?
A problem I see is that people under-value their work too much and to the point where it's really not worth doing anymore. I would much rather keep my prices a bit higher and continue to provide outstanding service, rather than depreciate and devalue myself.
Should we let the market determine how much we're worth, or should we tell the market how much we're worth and let it up to them to decide if what we're saying is true?
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